Also known as insolvent. In the context of bankruptcy, the financial condition of an entity, such that the sum of its debts exceeds the fair market value of all of its assets, not including any transferred or concealed property and property removed with intent to hinder, delay, or defraud such entity's creditors. This is known as "balance-sheet insolvency" (§101(32)(A), Bankruptcy Code). With respect to a municipality, insolvency occurs when such municipality is generally not paying its debts as they become due (unless such debts are the subject of a bona fide dispute) or is unable to pay its debts as they become due. This is known as "equity insolvency" (§101(32)(C), Bankruptcy Code). A showing of insolvency is not required to file for bankruptcy (except for municipalities).